Charges Against Ad Firms In Florida for Abaiting Gambling

Much has been heard about the arrest of David Carruthers, but there are other much smaller players in this game that are facing serious charges and other companies must now beware.

While criminal charges against Mr. Carruthers and other BetOnSports personnel made headlines, the indictment included criminal charges against lesser-known companies: Direct Mail Expertise Inc., DME Global Marketing and Fulfillment Inc. and Mobile Promotions Inc. These defendants were ad agencies based in Florida.

The government charged not only the ad agencies, but also individuals who own and operate them. Several defendants are in custody, and arrest warrants have been issued for the others. As part of its case, the government seeks forfeiture of all defendants' assets, down to their cars.

What should trouble people in direct marketing is that these advertising defendants do not appear to have engaged in gambling or similar activities. They face serious criminal charges because they performed promotional marketing services for clients that were engaged in a questionably illegal activity.

These unlawful activities are alleged to include disseminating advertising in the United States and online to direct traffic to Web sites such as www.betonsports.com and call centers. Included were such innocuous direct marketing activities such as mailing brochures, coupons and fliers and placing print, radio and television advertising.

Because the Florida defendants face counts of racketeering, conspiracy and fraud involving illegal gambling even though they presumably did not undertake activities more than carrying out advertising-related services, the DM industry must take these events as a loud wake-up call.

This includes list managers and brokers, payment processing services, telemarketing call centers, printers and all others who assist the challenged activities. The federal government has made clear that it will pursue those who assist companies engaged in illegal activities, even if those activities are legal in the countries in which they are occurring.

July 27, 2006
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com    Previous Page | Internet Gambling | Top Online Casinos | Submit News!